LONDON, Jan 5 (Reuters) - European shares bounced back on
Tuesday after a rally in mining and telecom stocks and some
stabilisation in Chinese markets, a day after poor Chinese
factory data triggered a sharp sell-off that hit world markets.

Chinese regulators leapt to support the country's stock
markets early on Tuesday, with the central bank pouring cash
into the money market system and the securities regulator
suggesting it might restrict share sales by major shareholders.

The securities regulator defended the functioning of the new
"circuit breaker" policy that caused Chinese stock markets to
suspend trade on Monday after markets fell 7 percent, triggering
the mechanism on the very first day it came into effect.

The CSI300 index of the largest listed companies
in Shanghai and Shenzhen closed 0.3 percent higher on Tuesday.

"Chinese markets managed to stabilise on hopes that the
central bank and the authorities will take measures to support
economic growth. And they have quite a bit of weaponry in their
arsenal like lowering the reserve requirements and cutting
interest rates," Philippe Gijsels, head of research at BNP
Paribas Fortis Global Markets, said.
Continuación...